Black Hills Corp. Reports 2024 Second-Quarter Results and Reaffirms 2024 Earnings Guidance
Black Hills Corp. (NYSE: BKH) reported Q2 2024 earnings of $0.33 per share, down from $0.35 in Q2 2023. Year-to-date earnings increased 6% compared to last year. The company reaffirmed its 2024 EPS guidance of $3.80 to $4.00. Key highlights include:
- Partnering with Meta to power a new AI data center in Cheyenne, Wyoming
- Advancing regulatory activities to recover investments and costs
- Pursuing approval for clean energy resources in Colorado
- Planning to add 100 MW of utility-owned generation in South Dakota by 2026
- Continuing construction of the 260-mile Ready Wyoming electric transmission line
The company reported progress on its climate goals, including a 27% reduction in greenhouse gas emissions from its natural gas distribution system since 2022.
Black Hills Corp. (NYSE: BKH) ha riportato un utile nel secondo trimestre 2024 di $0,33 per azione, in calo rispetto a $0,35 nel secondo trimestre 2023. Gli utili da inizio anno sono aumentati del 6% rispetto all'anno scorso. L'azienda ha ribadito la guida EPS per il 2024 di $3,80 a $4,00. I punti salienti includono:
- Collaborazione con Meta per alimentare un nuovo centro dati AI a Cheyenne, Wyoming
- Avanzamento delle attività regolatorie per recuperare investimenti e costi
- Ricerca di approvazione per risorse di energia pulita in Colorado
- Pianificazione di aggiungere 100 MW di generazione di proprietà pubblica nel South Dakota entro il 2026
- Continuazione della costruzione della linea di trasmissione elettrica Ready Wyoming lunga 260 miglia
L'azienda ha riportato progressi sui suoi obiettivi climatici, incluso un abbattimento del 27% delle emissioni di gas serra dal suo sistema di distribuzione di gas naturale dal 2022.
Black Hills Corp. (NYSE: BKH) reportó ganancias del segundo trimestre de 2024 de $0.33 por acción, una disminución desde $0.35 en el segundo trimestre de 2023. Las ganancias acumuladas en lo que va del año aumentaron un 6% en comparación con el año pasado. La compañía reafirmó su orientación de EPS para 2024 de $3.80 a $4.00. Los aspectos más destacados incluyen:
- Asociación con Meta para impulsar un nuevo centro de datos de IA en Cheyenne, Wyoming
- Avances en actividades regulatorias para recuperar inversiones y costos
- Búsqueda de aprobación para recursos de energía limpia en Colorado
- Planificación para agregar 100 MW de generación de propiedad pública en Dakota del Sur para 2026
- Continuación de la construcción de la línea de transmisión eléctrica Ready Wyoming de 260 millas
La compañía informó sobre avances en sus objetivos climáticos, incluyendo una reducción del 27% en las emisiones de gases de efecto invernadero de su sistema de distribución de gas natural desde 2022.
블랙 힐스 코프(뉴욕증권거래소: BKH)는 2024년 2분기 주당 순이익이 $0.33로, 2023년 2분기 $0.35에서 감소했다고 보고했습니다. 올해 들어 지금까지의 순이익은 지난해 대비 6% 증가했습니다. 회사는 2024년 주당 순이익 가이던스를 $3.80에서 $4.00로 재확인했습니다. 주요 사항은 다음과 같습니다:
- 와이오밍주 체이엔에 새 AI 데이터 센터를 구축하기 위해 메타와 파트너십 체결
- 투자 및 비용 회수를 위한 규제 활동 진전
- 콜로라도에서 청정 에너지원 승인 추구
- 2026년까지 사우스다코타에서 100MW의 공공 소유 발전 추가 계획
- 260마일 길이의 레디 와이오밍 전력 전송선 공사 지속
회사는 2022년 이후 천연가스 배급 시스템에서 온실가스 배출량을 27% 줄였다고 보고했습니다.
Black Hills Corp. (NYSE: BKH) a annoncé un bénéfice par action de 0,33 $ pour le deuxième trimestre 2024, en baisse par rapport à 0,35 $ au deuxième trimestre 2023. Les bénéfices cumulatifs depuis le début de l'année ont augmenté de 6 % par rapport à l'année précédente. L'entreprise a confirmé sa prévision de BPA pour 2024 de 3,80 $ à 4,00 $. Les points clés comprennent :
- Partenariat avec Meta pour la mise en place d'un nouveau centre de données IA à Cheyenne, Wyoming
- Avancement des activités réglementaires pour récupérer les investissements et les coûts
- Poursuite de l'approbation des ressources d'énergie propre dans le Colorado
- Prévisions d'ajouter 100 MW de production d'énergie détenue par l'utilité dans le Dakota du Sud d'ici 2026
- Poursuite de la construction de la ligne de transmission électrique Ready Wyoming de 260 miles
L'entreprise a fait état de progrès sur ses objectifs climatiques, y compris une réduction de 27 % des émissions de gaz à effet de serre de son système de distribution de gaz naturel depuis 2022.
Black Hills Corp. (NYSE: BKH) berichtete von Q2 2024-Ergebnissen von 0,33 $ pro Aktie, ein Rückgang von 0,35 $ im Q2 2023. Die Erträge von Jahresbeginn bis heute stiegen im Vergleich zum Vorjahr um 6 %. Das Unternehmen bestätigte seine EPS-Prognose für 2024 von 3,80 $ bis 4,00 $. Zu den wichtigsten Punkten gehören:
- Partnerschaft mit Meta zur Einrichtung eines neuen KI-Datenzentrums in Cheyenne, Wyoming
- Fortschritte bei regulatorischen Aktivitäten zur Rückgewinnung von Investitionen und Kosten
- Suche nach Genehmigungen für saubere Energiequellen in Colorado
- Planung zur Hinzufügung von 100 MW an unternehmenseigener Erzeugung im South Dakota bis 2026
- Fortsetzung des Baus der 260-Meilen-langen Ready Wyoming-Elektroübertragungsleitung
Das Unternehmen berichtete über Fortschritte bei seinen Klimazielen, einschließlich einer Reduzierung der Treibhausgasemissionen um 27% aus seinem Erdgasverteilungssystem seit 2022.
- Reaffirmed 2024 EPS guidance of $3.80 to $4.00
- Year-to-date earnings increased 6% compared to last year
- Partnering with Meta to power a new AI data center in Wyoming
- 27% reduction in greenhouse gas emissions from natural gas distribution since 2022
- Planning to add 100 MW of utility-owned generation in South Dakota by 2026
- Advancing regulatory activities to recover investments and costs
- Q2 2024 earnings per share decreased to $0.33 from $0.35 in Q2 2023
Insights
Black Hills Corp's Q2 2024 results show a mixed performance with some positive trends but also challenges. Earnings per share decreased slightly to
Key positives include:
- New rates and rider recovery boosting margins
- Lower operating expenses
- Reaffirmation of 2024 earnings guidance of
$3.80 to$4.00 per share - Progress on customer-focused strategy, including powering Meta's new AI data center
Challenges to monitor:
- Weather impacts on utility margins
- Regulatory outcomes of pending rate reviews
- Execution of capital projects like the Ready Wyoming transmission line
The company's focus on clean energy transition and reliability improvements aligns with industry trends. The
Black Hills Corp's Q2 results reflect the typical challenges faced by utilities, particularly weather sensitivity. The company's strategic focus on data centers and clean energy transition is noteworthy.
Key observations:
- The partnership with Meta for its AI data center showcases Black Hills' ability to attract high-value customers with tailored energy solutions.
- The company's Clean Energy Plan in Colorado, aiming for
80% emissions reduction by 2030, aligns with industry trends but may require significant investments. - The Ready Wyoming transmission project enhances grid reliability and market access, important for future growth.
- Regulatory activities across multiple states (Arkansas, Iowa, Colorado) will be critical to watch, as they impact the company's ability to recover investments.
The company's dividend increase, marking 54 consecutive years of growth, is impressive for the utility sector. However, the equity issuance of
Overall, Black Hills appears to be navigating the evolving utility landscape well, balancing traditional operations with forward-looking investments in clean energy and grid modernization.
RAPID CITY, S.D., July 31, 2024 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced financial results for the second quarter of 2024. Net income available for common stock and earnings per share for the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, were:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| (in millions, except per share amounts) | |||||||||||||
| Net income available for common stock | $ | 22.8 | $ | 23.1 | $ | 150.6 | $ | 137.1 | |||||
| Earnings per share, Diluted | $ | 0.33 | $ | 0.35 | $ | 2.19 | $ | 2.06 | |||||
Second quarter earnings were
“Year-to-date earnings were up
“We continue to deliver progress on our customer-focused strategy and are excited about powering Meta’s newest AI data center in Cheyenne, which we expect to begin serving in 2026. Our team continues to attract new data centers with our leading mission-critical reliability and innovative energy solutions, including our unique tariffs and capital-light energy procurement model.
“Regulatory activities continue to move forward to recover investments and costs critical to serving our customers safely and reliably. Our rate review for Arkansas Gas is advancing through its final stages, while rate reviews filed during the second quarter for Iowa Gas and Colorado Electric are on schedule.
“As we execute on our commitment to a reliable, cost-effective and cleaner energy future, we are delivering new resources to serve the growing needs of our customers and communities. In Colorado, we continue to pursue regulatory approval of our preferred portfolio of clean energy resources to reduce emissions
SECOND-QUARTER 2024 HIGHLIGHTS AND UPDATES
Electric Utilities
- During the second quarter, South Dakota Electric continued its resource planning process to add 100 megawatts of utility-owned, dispatchable natural gas resources by mid-year 2026. South Dakota Electric expects to file a pre-application notice in South Dakota and request a certificate of public convenience and necessity in Wyoming in the second half of 2024.
- On July 11, Wyoming Electric announced it will partner with Meta to provide power for its newest AI data center to be constructed in Cheyenne, Wyoming. The company plans to procure market energy under its Large Power Contract Service tariff with customized energy resources essential to Meta's operations and sustainability objectives.
- On June 14, Colorado Electric filed a rate review with the Colorado Public Utilities Commission seeking the recovery of significant infrastructure investments in its 3,200-mile electric distribution and 600-mile electric transmission systems. The rate review requested
$37 million in new annual revenue based on a capital structure of53% equity and47% debt and a return on equity of10.5% . The company requested new rates effective in the first quarter of 2025. - On April 17, Colorado Electric filed its 120-Day report recommending 400 megawatts of renewable energy resources to advance its Clean Energy Plan. The final composition of resources and timing is subject to review and approval by the Colorado Public Utilities Commission, which is expected later this year.
- During the second quarter, Wyoming Electric continued construction on Ready Wyoming, a 260-mile electric transmission project. Construction is expected to be completed in multiple segments in 2024 and 2025.
Gas Utilities
- On May 1, Iowa Gas filed a rate review request with the Iowa Utilities Commission seeking approval to recover approximately
$100 million of system investments and inflationary impacts on expenses to serve customers. The rate review requested$21 million of new annual revenue based on a capital structure of51% equity and49% debt and a return on equity of10.5% . Interim rates were effective on May 11, 2024, with final rates requested in the first quarter of 2025. - During the second quarter, Arkansas Gas advanced its rate review request to recover
$130 million of system investments and the inflationary impacts on expenses to serve customers. Filed on Dec. 4, 2023, the rate review requested$44 million of new annual revenue based on a capital structure of48% equity and52% debt and a return on equity of10.5% . The company requested new rates in the fourth quarter of 2024.
Corporate and Other
- On July 22, Black Hills’ board of directors approved a quarterly dividend of
$0.65 per share payable on Sept. 1, 2024, to common shareholders of record at the close of business on Aug. 19, 2024. The dividend, on an annualized rate, represents 54 consecutive years of dividend increases, the second longest track record in the electric and natural gas industry. - On May 31, Black Hills amended and restated its revolving credit facility with similar terms as the former facility, maintaining total commitments of
$750 million and extending the term through May 31, 2029. - On May 16, Black Hills completed a public debt offering of
$450 million ,6.00% senior unsecured notes due Jan. 15, 2035. Proceeds were used for general corporate purposes and, along with available cash or short-term borrowings under the company's existing facilities, will be used to fully repay the$600 million notes due Aug. 23, 2024. - On May 9, S&P Global Ratings affirmed Black Hills’ issuer credit rating at BBB+ with a stable outlook.
- During the second quarter, Black Hills issued 0.8 million shares of new common stock for net proceeds of
$42 million under its at-the-market equity offering program. Year-to-date, the company has issued a total of 1.4 million shares of new common stock for net proceeds of$73 million . - During the second quarter, Black Hills published its 2023 Corporate Sustainability Report, highlighting the company’s environmental, social and governance impacts and its progress on major projects and climate goals. The company reported a
27% reduction in greenhouse gas emissions from its natural gas distribution system since 2022 and is on track to achieve its goal of net zero emissions by 2035. Additionally, the company has reduced its electric utility greenhouse gas emissions by nearly one third since 2005 and is on track to achieve its goals to reduce electric emissions intensity by40% by 2030 and70% by 2040 compared to 2005.
2024 EARNINGS GUIDANCE
Black Hills affirms its guidance for 2024 earnings per share available for common stock to be in the range of
- Normal weather conditions within our utility service territories including temperatures, precipitation levels and wind conditions;
- Normal operations and weather conditions for planned construction, maintenance and/or capital investment projects;
- Constructive and timely outcomes of utility regulatory dockets;
- No significant unplanned outages at our generating facilities;
- Equity issuance of
$170 million to$190 million through the at-the-market equity offering program; and - Production tax credits of approximately
$18 million associated with wind generation assets.
CONFERENCE CALL AND WEBCAST
Black Hills will host a live conference call and webcast at 11 a.m. EDT on Thursday, Aug. 1, 2024, to discuss its financial and operating performance.
To access the live webcast and download a copy of the investor presentation, go to the “Investor Relations” section of the Black Hills website at www.blackhillscorp.com and click on “News and Events” and then “Events & Presentation.” The presentation will be posted on the website before the webcast. Listeners should allow at least five minutes for registering and accessing the presentation. For those unable to listen to the live broadcast, a replay will be available on the company’s website.
To ask a question during the live broadcast, users can access dial-in information and a personal identification number by registering for the event at https://register.vevent.com/register/BI127d514d8e3a423191cc495600c59aa6.
A listen-only webcast player and presentation slides can be accessed live at https://edge.media-server.com/mmc/p/j9weytyi with a replay of the event available for up to one year.
| BLACK HILLS CORPORATION CONSOLIDATED FINANCIAL RESULTS | |||||||||||||
| (Minor differences may result due to rounding) | |||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| (in millions) | |||||||||||||
| Operating income: | |||||||||||||
| Electric Utilities | $ | 46.3 | $ | 46.6 | $ | 110.9 | $ | 107.7 | |||||
| Gas Utilities | 23.0 | 17.7 | 153.7 | 132.4 | |||||||||
| Corporate and Other | 1.3 | (0.8 | ) | (0.6 | ) | (1.7 | ) | ||||||
| Operating income | 70.6 | 63.5 | 264.0 | 238.4 | |||||||||
| Interest expense, net | (42.6 | ) | (41.5 | ) | (86.7 | ) | (85.0 | ) | |||||
| Other income (expense), net | 0.4 | (1.5 | ) | (0.5 | ) | (0.9 | ) | ||||||
| Income tax benefit (expense) | (3.7 | ) | 6.1 | (20.6 | ) | (8.6 | ) | ||||||
| Net income | 24.7 | 26.6 | 156.2 | 143.9 | |||||||||
| Net income attributable to non-controlling interest | (1.9 | ) | (3.5 | ) | (5.6 | ) | (6.8 | ) | |||||
| Net income available for common stock | $ | 22.8 | $ | 23.1 | $ | 150.6 | $ | 137.1 | |||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Weighted average common shares outstanding (in millions): | |||||||||||||
| Basic | 69.0 | 66.6 | 68.6 | 66.3 | |||||||||
| Diluted | 69.0 | 66.7 | 68.7 | 66.4 | |||||||||
| Earnings per share: | |||||||||||||
| Earnings Per Share, Basic | $ | 0.33 | $ | 0.35 | $ | 2.20 | $ | 2.07 | |||||
| Earnings Per Share, Diluted | $ | 0.33 | $ | 0.35 | $ | 2.19 | $ | 2.06 | |||||
USE OF NON-GAAP FINANCIAL MEASURES
Gas and Electric Utility Margin
Gas and Electric Utility margin (revenue less cost of sales) is considered a non-GAAP financial measure due to the exclusion of operation and maintenance expenses, depreciation and amortization expenses, and property and production taxes from the measure. The presentation of Gas and Electric Utility margin is intended to supplement investors’ understanding of operating performance.
Electric Utility margin is calculated as operating revenue less cost of fuel and purchased power. Gas Utility margin is calculated as operating revenue less cost of gas sold. Our Gas and Electric Utility margin is impacted by the fluctuations in power purchases and natural gas and other fuel supply costs. However, while these fluctuating costs impact Gas and Electric Utility margin as a percentage of revenue, they only impact total Gas and Electric Utility margin if the costs cannot be passed through to customers.
Our Gas and Electric Utility margin measure may not be comparable to other companies’ Gas and Electric Utility margin measures. Furthermore, this measure is not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance.
SEGMENT PERFORMANCE SUMMARY
Operating results from our business segments for the three and six months ended June 30, 2024, and 2023, compared to the three and six months ended June 30, 2023, are discussed below.
Certain lines of business in which we operate are highly seasonal, and revenue from, and certain expenses for, such operations may fluctuate significantly between quarterly periods. Demand for electricity and natural gas is sensitive to seasonal cooling, heating and industrial load requirements. In particular, the normal peak usage season for our electric utilities is June through August while the normal peak usage season for our gas utilities is November through March. Significant earnings variances can be expected between the Gas Utilities segment’s peak and off-peak seasons. Due to this seasonal nature, our results of operations for the three and six months ended June 30, 2024 and 2023 are not necessarily indicative of the results of operations to be expected for any other period or for the entire year.
All amounts are presented on a pre-tax basis unless otherwise indicated. Minor differences in amounts may result due to rounding.
| Electric Utilities | |||||||||||||||||||
| Three Months Ended June 30, | Variance | Six Months Ended June 30, | Variance | ||||||||||||||||
| 2024 | 2023 | 2024 vs. 2023 | 2024 | 2023 | 2024 vs. 2023 | ||||||||||||||
| (in millions) | |||||||||||||||||||
| Revenue | $ | 205.1 | $ | 193.1 | $ | 12.0 | $ | 427.3 | $ | 411.8 | $ | 15.5 | |||||||
| Cost of fuel and purchased power | 45.9 | 36.4 | 9.5 | 100.8 | 91.8 | 9.0 | |||||||||||||
| Electric Utility margin (non-GAAP) | 159.2 | 156.7 | 2.5 | 326.5 | 320.0 | 6.5 | |||||||||||||
| Operations and maintenance | 68.1 | 65.4 | 2.7 | 125.5 | 122.8 | 2.7 | |||||||||||||
| Depreciation and amortization | 35.5 | 35.8 | (0.3 | ) | 70.8 | 70.9 | (0.1 | ) | |||||||||||
| Taxes - property and production | 9.3 | 8.9 | 0.4 | 19.3 | 18.6 | 0.7 | |||||||||||||
| Operating income | $ | 46.3 | $ | 46.6 | $ | (0.3 | ) | $ | 110.9 | $ | 107.7 | $ | 3.2 | ||||||
Three Months Ended June 30, 2024, Compared with Three Months Ended June 30, 2023
Electric Utility margin increased as a result of:
| (in millions) | |||
| Weather | $ | 2.4 | |
| New rates and rider recovery | 2.3 | ||
| Retail customer growth and usage | 1.8 | ||
| Integrated Generation (a) | (4.4 | ) | |
| Other | 0.4 | ||
| $ | 2.5 | ||
_________________
a) Primarily driven by decreased revenues due to unplanned outages at Wygen I and Pueblo Airport Generation #4-5.
Operations and maintenance expense increased primarily due to
Depreciation and amortization was comparable to the same period in the prior year.
Taxes - property and production was comparable to the same period in the prior year.
Six Months Ended June 30, 2024, Compared with Six Months Ended June 30, 2023
Electric Utility margin increased as a result of:
| (in millions) | |||
| New rates and rider recovery | $ | 10.5 | |
| Weather | 1.2 | ||
| Integrated Generation (a) | (3.5 | ) | |
| Off-system excess energy sales | (3.2 | ) | |
| Other | 1.5 | ||
| $ | 6.5 | ||
_________________
a) Primarily driven by decreased revenues due to unplanned outages at Wygen I and Pueblo Airport Generation #4-5.
Operations and maintenance expense increased primarily due to a prior year one-time
Depreciation and amortization was comparable to the same period in the prior year.
Taxes - property and production was comparable to the same period in the prior year.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| Operating Statistics | 2024 | 2023 | 2024 | 2023 | |||||||||
| Quantities Sold (GWh): | |||||||||||||
| Retail Sales | 1,424.8 | 1,340.8 | 2,913.2 | 2,737.2 | |||||||||
| Contract/Off-system/Power Marketing Wholesale | 301.8 | 241.7 | 565.4 | 643.2 | |||||||||
| Total Regulated | 1,726.6 | 1,582.5 | 3,478.6 | 3,380.4 | |||||||||
| Non-regulated | 21.1 | 22.8 | 49.1 | 77.2 | |||||||||
| Total quantities sold | 1,747.7 | 1,605.3 | 3,527.7 | 3,457.6 | |||||||||
| Contracted generated facilities availability by fuel type: | |||||||||||||
| Coal | 75.5 | % | 92.0 | % | 85.6 | % | 92.4 | % | |||||
| Natural gas and diesel oil | 91.6 | % | 93.5 | % | 94.1 | % | 93.9 | % | |||||
| Wind | 92.1 | % | 93.0 | % | 91.2 | % | 93.4 | % | |||||
| Total availability | 87.1 | % | 93.0 | % | 91.3 | % | 93.4 | % | |||||
| Wind capacity factor | 36.9 | % | 34.4 | % | 38.4 | % | 41.2 | % | |||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
| Degree Days | 2024 | 2023 | 2024 | 2023 | |||||
| Actual | Variance from Normal | Actual | Variance from Normal | Actual | Variance from Normal | Actual | Variance from Normal | ||
| Heating Degree Days | 757 | (13)% | 840 | (6)% | 3,577 | (8)% | 3,940 | ||
| Cooling Degree Days | 219 | 75 | (60)% | 219 | 75 | (60)% | |||
| Gas Utilities | |||||||||||||||||||
| Three Months Ended June 30, | Variance | Six Months Ended June 30, | Variance | ||||||||||||||||
| 2024 | 2023 | 2024 vs. 2023 | 2024 | 2023 | 2024 vs. 2023 | ||||||||||||||
| (in millions) | |||||||||||||||||||
| Revenue | $ | 202.0 | $ | 222.7 | $ | (20.7 | ) | $ | 710.6 | $ | 929.6 | $ | (219.0 | ) | |||||
| Cost of natural gas sold | 61.3 | 85.0 | (23.7 | ) | 323.2 | 555.9 | (232.7 | ) | |||||||||||
| Gas Utility margin (non-GAAP) | 140.7 | 137.7 | 3.0 | 387.4 | 373.7 | 13.7 | |||||||||||||
| Operations and maintenance | 79.3 | 84.0 | (4.7 | ) | 157.9 | 171.2 | (13.3 | ) | |||||||||||
| Depreciation and amortization | 31.1 | 28.8 | 2.3 | 61.5 | 55.3 | 6.2 | |||||||||||||
| Taxes - property and production | 7.3 | 7.2 | 0.1 | 14.3 | 14.8 | (0.5 | ) | ||||||||||||
| Operating income | $ | 23.0 | $ | 17.7 | $ | 5.3 | $ | 153.7 | $ | 132.4 | $ | 21.3 | |||||||
Three Months Ended June 30, 2024, Compared with Three Months Ended June 30, 2023
Gas Utility margin increased as a result of:
| (in millions) | |||
| New rates and rider recovery | $ | 9.1 | |
| Retail customer growth and usage | 0.9 | ||
| Weather | (6.2 | ) | |
| Mark-to-market on non-utility natural gas commodity contracts | (0.5 | ) | |
| Other | (0.3 | ) | |
| $ | 3.0 | ||
Operations and maintenance expense decreased primarily due to lower employee-related expenses.
Depreciation and amortization increased primarily due to a higher asset base driven by current year and prior year capital expenditures.
Taxes - property and production was comparable to the same period in the prior year.
Six Months Ended June 30, 2024, Compared with Six Months Ended June 30, 2023
Gas Utility margin increased as a result of:
| (in millions) | |||
| New rates and rider recovery | $ | 22.1 | |
| Mark-to-market on non-utility natural gas commodity contracts | 3.2 | ||
| Retail customer growth and usage | 2.4 | ||
| Weather | (13.6 | ) | |
| Other | (0.4 | ) | |
| $ | 13.7 | ||
Operations and maintenance expense decreased primarily due to
Depreciation and amortization increased primarily due to a higher asset base driven by current year and prior year capital expenditures.
Taxes - property and production was comparable to the same period in the prior year.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| Operating Statistics | 2024 | 2023 | 2024 | 2023 | |||||||||
| Quantities Sold and Transported (Dth in millions): | |||||||||||||
| Distribution | 12.6 | 13.1 | 54.3 | 58.0 | |||||||||
| Transport and Transmission | 34.5 | 34.2 | 81.2 | 81.4 | |||||||||
| Total Quantities Sold | 47.1 | 47.3 | 135.5 | 139.4 | |||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| Actual | Variance from Normal | Actual | Variance from Normal | Actual | Variance from Normal | Actual | Variance from Normal | ||
| Heating Degree Days | 587 | (20)% | 674 | (10)% | 3,452 | (10)% | 3,870 | ||
Corporate and Other
Corporate and Other represents certain unallocated expenses for administrative activities that support our reportable operating segments. Corporate and Other also includes business development activities that are not part of our operating segments and inter-segment eliminations.
| Three Months Ended June 30, | Variance | Six Months Ended June 30, | Variance | ||||||||||||||||
| 2024 | 2023 | 2024 vs. 2023 | 2024 | 2023 | 2024 vs. 2023 | ||||||||||||||
| (in millions) | |||||||||||||||||||
| Operating income (loss) | $ | 1.3 | $ | (0.8 | ) | $ | 2.1 | $ | (0.6 | ) | $ | (1.7 | ) | $ | 1.1 | ||||
Three Months Ended June 30, 2024, Compared with Three Months Ended June 30, 2023
Operating income was comparable to the same period in the prior year.
Six Months Ended June 30, 2024, Compared with Six Months Ended June 30, 2023
Operating income was comparable to the same period in the prior year.
| Consolidated Interest Expense, Other Income and Income Tax Expense | |||||||||||||||||||
| Three Months Ended June 30, | Variance | Six Months Ended June 30, | Variance | ||||||||||||||||
| 2024 | 2023 | 2024 vs. 2023 | 2024 | 2023 | 2024 vs. 2023 | ||||||||||||||
| (in millions) | |||||||||||||||||||
| Interest expense, net | $ | (42.6 | ) | $ | (41.5 | ) | $ | (1.1 | ) | $ | (86.7 | ) | $ | (85.0 | ) | $ | (1.7 | ) | |
| Other income (expense), net | $ | 0.4 | $ | (1.5 | ) | $ | 1.9 | $ | (0.5 | ) | $ | (0.9 | ) | $ | 0.4 | ||||
| Income tax benefit (expense) | $ | (3.7 | ) | $ | 6.1 | $ | (9.8 | ) | $ | (20.6 | ) | $ | (8.6 | ) | $ | (12.0 | ) | ||
Three Months Ended June 30, 2024, Compared with Three Months Ended June 30, 2023
Interest expense, net was comparable to the same period in the prior year primarily due to higher interest rates on higher long-term debt balances mostly offset by increased interest income on higher cash and cash equivalents balances.
Other (expense), net was comparable to the same period in the prior year.
Income tax (expense) increased primarily due to higher pre-tax income and a higher effective tax rate. For the three months ended June 30, 2024, the effective tax rate was
Six Months Ended June 30, 2024, Compared with Six Months Ended June 30, 2023
Interest expense, net was comparable to the same period in the prior year primarily due to higher interest rates on higher long-term debt balances mostly offset by increased interest income on higher cash and cash equivalents balances.
Other (expense), net was comparable to the same period in the prior year.
Income tax (expense) increased primarily due to higher pre-tax income and a higher effective tax rate. For the six months ended June 30, 2024, the effective tax rate was
ABOUT BLACK HILLS CORP.
Black Hills Corp. (NYSE: BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.34 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com, www.blackhillscorp.com/corporateresponsibility and www.blackhillsenergy.com.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. This includes, without limitations, our 2024 earnings guidance. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including without limitation, the risk factors described in Item 1A of Part I of our 2023 Annual Report on Form 10-K and other reports that we file with the SEC from time to time, and the following:
- The accuracy of our assumptions on which our earnings guidance is based;
- Our ability to obtain adequate cost recovery for our utility operations through regulatory proceedings and favorable rulings on periodic applications to recover costs for capital additions, plant retirements and decommissioning, fuel, transmission, purchased power, and other operating costs and the timing in which new rates would go into effect;
- Our ability to complete our capital program in a cost-effective and timely manner;
- Our ability to execute on our strategy;
- Our ability to successfully execute our financing plans;
- The effects of changing interest rates;
- Our ability to achieve our greenhouse gas emissions intensity reduction goals;
- Board of Directors’ approval of any future quarterly dividends;
- The impact of future governmental regulation;
- Our ability to overcome the impacts of supply chain disruptions on availability and cost of materials;
- The effects of inflation and volatile energy prices;
- Our ability to obtain sufficient insurance coverage at reasonable costs and whether such coverage will protect us against significant losses; and
- Other factors discussed from time to time in our filings with the SEC.
New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.
| CONSOLIDATING INCOME STATEMENTS | ||||||||||||
| (Minor differences may result due to rounding) | ||||||||||||
| Consolidating Income Statement | ||||||||||||
| Three Months Ended June 30, 2024 | Electric Utilities | Gas Utilities | Corporate and Other | Total | ||||||||
| (in millions) | ||||||||||||
| Revenue | $ | 205.1 | $ | 202.0 | $ | (4.5 | ) | $ | 402.6 | |||
| Fuel, purchased power and cost of natural gas sold | 45.9 | 61.3 | (0.1 | ) | 107.1 | |||||||
| Operations and maintenance | 68.1 | 79.3 | (5.7 | ) | 141.7 | |||||||
| Depreciation and amortization | 35.5 | 31.1 | - | 66.6 | ||||||||
| Taxes - property and production | 9.3 | 7.3 | - | 16.6 | ||||||||
| Operating income (loss) | 46.3 | 23.0 | 1.3 | 70.6 | ||||||||
| Interest expense, net | (42.6 | ) | ||||||||||
| Other income (expense), net | 0.4 | |||||||||||
| Income tax (expense) | (3.7 | ) | ||||||||||
| Net income | 24.7 | |||||||||||
| Net income attributable to non-controlling interest | (1.9 | ) | ||||||||||
| Net income available for common stock | $ | 22.8 | ||||||||||
| Consolidating Income Statement | ||||||||||||
| Three Months Ended June 30, 2023 | Electric Utilities | Gas Utilities | Corporate and Other | Total | ||||||||
| (in millions) | ||||||||||||
| Revenue | $ | 193.1 | $ | 222.7 | $ | (4.5 | ) | $ | 411.3 | |||
| Fuel, purchased power and cost of natural gas sold | 36.4 | 85.0 | (0.1 | ) | 121.3 | |||||||
| Operations and maintenance | 65.4 | 84.0 | (3.6 | ) | 145.8 | |||||||
| Depreciation and amortization | 35.8 | 28.8 | 0.1 | 64.7 | ||||||||
| Taxes - property and production | 8.9 | 7.2 | (0.1 | ) | 16.0 | |||||||
| Operating income (loss) | 46.6 | 17.7 | (0.8 | ) | 63.5 | |||||||
| Interest expense, net | (41.5 | ) | ||||||||||
| Other income (expense), net | (1.5 | ) | ||||||||||
| Income tax benefit | 6.1 | |||||||||||
| Net income | 26.6 | |||||||||||
| Net income attributable to non-controlling interest | (3.5 | ) | ||||||||||
| Net income available for common stock | $ | 23.1 | ||||||||||
| Consolidating Income Statement | ||||||||||||
| Six Months Ended June 30, 2024 | Electric Utilities | Gas Utilities | Corporate and Other | Total | ||||||||
| (in millions) | ||||||||||||
| Revenue | $ | 427.3 | $ | 710.6 | $ | (8.9 | ) | $ | 1,129.0 | |||
| Fuel, purchased power and cost of natural gas sold | 100.8 | 323.2 | (0.3 | ) | 423.7 | |||||||
| Operations and maintenance | 125.5 | 157.9 | (8.2 | ) | 275.2 | |||||||
| Depreciation and amortization | 70.8 | 61.5 | 0.2 | 132.5 | ||||||||
| Taxes - property and production | 19.3 | 14.3 | - | 33.6 | ||||||||
| Operating income (loss) | 110.9 | 153.7 | (0.6 | ) | 264.0 | |||||||
| Interest expense, net | (86.7 | ) | ||||||||||
| Other income (expense), net | (0.5 | ) | ||||||||||
| Income tax (expense) | (20.6 | ) | ||||||||||
| Net income | 156.2 | |||||||||||
| Net income attributable to non-controlling interest | (5.6 | ) | ||||||||||
| Net income available for common stock | $ | 150.6 | ||||||||||
| Consolidating Income Statement | ||||||||||||
| Six Months Ended June 30, 2023 | Electric Utilities | Gas Utilities | Corporate and Other | Total | ||||||||
| (in millions) | ||||||||||||
| Revenue | $ | 411.8 | $ | 929.6 | $ | (9.0 | ) | $ | 1,332.4 | |||
| Fuel, purchased power and cost of natural gas sold | 91.8 | 555.9 | (0.2 | ) | 647.5 | |||||||
| Operations and maintenance | 122.8 | 171.2 | (7.3 | ) | 286.7 | |||||||
| Depreciation and amortization | 70.9 | 55.3 | 0.2 | 126.4 | ||||||||
| Taxes - property and production | 18.6 | 14.8 | - | 33.4 | ||||||||
| Operating income (loss) | 107.7 | 132.4 | (1.7 | ) | 238.4 | |||||||
| Interest expense, net | (85.0 | ) | ||||||||||
| Other income (expense), net | (0.9 | ) | ||||||||||
| Income tax (expense) | (8.6 | ) | ||||||||||
| Net income | 143.9 | |||||||||||
| Net income attributable to non-controlling interest | (6.8 | ) | ||||||||||
| Net income available for common stock | $ | 137.1 | ||||||||||
| Investor Relations: | |
| Sal Diaz | |
| Phone | 605-399-5079 |
| investorrelations@blackhillscorp.com | |
| Media Contact: | |
| 24-hour Media Assistance | 888-242-3969 |
FAQ
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